Last updated: March 28, 2026
BALI GUIDE
Starting a Business in Bali: PT PMA Guide
How to set up a legal foreign-owned company in Indonesia.
Setting Up a Business in Bali
Indonesia has significantly simplified the process for foreign business ownership through the PT PMA (Penanaman Modal Asing) structure. A PT PMA allows 100% foreign ownership in many business sectors, providing a legal framework for operating, employing staff, and generating income in Indonesia. For Dubai expats who ran businesses through free zone companies, the PT PMA is the Indonesian equivalent.
What is a PT PMA and how do I set one up?
A PT PMA is a limited liability company with foreign ownership, registered through the Indonesian Investment Coordinating Board (BKPM/OSS system). The setup requires: minimum investment plan of IDR 10 billion (~$625,000) declared but not immediately required as paid-up capital, minimum paid-up capital of IDR 10 million (~$625), two shareholders minimum, one director and one commissioner, a registered Indonesian office address, and the relevant business classification (KBLI codes). The actual setup process takes 2-4 weeks and costs $2,000-$4,000 through our legal partners.
Popular Business Types for Dubai Expats in Bali
Common business categories for former Dubai expats include: consulting and professional services, digital marketing and tech, import/export trading, tourism and hospitality (villas, tours, restaurants), education and training, property management, and health and wellness services. Each sector has specific KBLI codes and may have different foreign ownership limits. Our business setup team identifies the optimal structure for your specific activity and ensures full compliance with Indonesian regulations.
What taxes does a PT PMA pay in Bali?
Indonesian corporate tax is 22% on net profits. MSMEs with turnover under IDR 4.8 billion (~$300,000) benefit from a reduced 0.5% tax on gross turnover. VAT is 11% on goods and services. Personal income tax for foreign workers ranges from 5-35% on a progressive scale. Indonesia has tax treaties with the UAE and most major countries, which can help avoid double taxation. While not as low as Dubai zero-tax environment, the dramatically lower cost of living means your after-tax purchasing power in Bali typically exceeds what you had in Dubai.